This bill proposes to provide sales and use tax exemptions specifically for data centers in Arkansas. It introduces a new section to the Arkansas Code that defines "data center equipment," "eligible data center costs," and "qualified data center," among other terms. The bill outlines that the gross receipts from the sale of data center equipment, eligible data center costs, certain services related to the operation of a qualified data center, and electricity used by a qualified data center will be exempt from the gross receipts tax and compensating use tax.

Additionally, the bill establishes a process for qualified firms to apply for these exemptions, which includes meeting specific investment and compensation criteria within a designated timeframe. Once an application is approved, the commission will issue a financial incentive certificate to the qualified firm, which must then report annually on its investment and compensation to maintain eligibility for the exemption. The effective date for this act is set for the first day of the calendar quarter following its enactment.